Headlines
Foreign investors stock up on euro zone debt in June
Published by Global Banking and Finance Review
Posted on August 19, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 19, 2025
2 min readLast updated: January 22, 2026
Foreign investors increased euro zone debt holdings in June, signaling confidence in the region amid US financial instability.
FRANKFURT (Reuters) -Foreign investors added to their stock of euro zone debt in June, European Central Bank data showed on Tuesday, in a tentative sign the bloc was becoming more popular at a time of financial upheaval in the United States.
The ECB has talked up the euro's prospect as a global haven for investors as U.S. President Donald Trump's unprecedented pressure on the Federal Reserve and erratic trade policy casts a shadow on the dollar's own status.
Financial account data from the euro zone's central bank showed investors from outside the bloc were warming to the single currency, which a decade ago was on the brink of collapse amid a debt crisis.
Foreign investors bought a net 59.8 billion euros ($69.82 billion) worth of euro zone debt with a maturity of at least one year in June, the ECB data showed.
The pace of buying slowed, however, from the month before, when it was the fastest since the data series started in 2013, at 97.3 billion euros.
The euro zone's adjusted current account surplus, which covers the flows of goods, services and income, widened to 35.8 billion euros from 31.8 billion euros in June.
This was thanks to primary income, or proceeds from investment and labour, offsetting a drop in the trade surplus.
In the 12 months to June, the adjusted surplus equalled 2.0% of the bloc's GDP, down from 2.6% in the preceding 12 months.
($1 = 0.8565 euros)
(Reporting by Francesco Canepa and Balazs Koranyi, Editing by Timothy Heritage and Christina Fincher)
Foreign investment refers to the purchase of assets or stakes in companies located in a different country, which can include stocks, bonds, or real estate.
The euro zone is a group of European Union countries that have adopted the euro as their official currency, facilitating easier trade and economic stability.
A current account surplus occurs when a country's exports of goods, services, and income exceed its imports, indicating a positive balance of trade.
The European Central Bank (ECB) is the central bank for the euro and is responsible for monetary policy within the euro zone, aiming to maintain price stability.
Investment flows refer to the movement of capital into and out of a country, which can influence economic growth and currency value.
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